The city of Marina has paid about $150,000 to Tony Altfeld, the city”s 10-year city manager fired in March, to settle a dispute over his severance pay.

Payments received last Friday by Altfeld”s attorney included $145,250 in severance pay, plus $5,000 in interest, for Altfeld.

The city also paid $17,750 to the law firm that represented Altfeld in connection with his termination and settlement.

Altfeld was fired March 7 on a 3-2 vote by the City Council after months of negotiations over new contract terms dealing with compensation and severance pay.

Altfeld filed a claim against the city in April seeking severance pay equal to 12 months of salary and benefits plus other damages.

The settlement, announced June 19 after a council closed session, puts to rest any claim that Altfeld had against the city. The council voted 4-1, with Councilman Frank O”Connell dissenting, to approve the settlement.

At the time of his firing, Altfeld”s annual salary was $220,000 and his contract provided for 12 months” severance pay — though that was disputed by some council members.

Before his firing, city labor attorney Edward Kreisberg said the city wanted to cut Altfeld”s pay to $180,000 a year and cap his severance pay at four months.

The settlement works out to be slightly less than eight months of severance based on Altfeld”s $220,000 annual salary.

His attorney, Mark O”Connor, said “We took the high road by compromising on the amount of money due.

“It allows both parties to conclude the matter with significant savings to the citizens of Marina,” O”Connor said, referring to Altfeld”s original claim for $220,000.

City Councilwoman Nancy Amadeo, who opposed Altfeld”s termination, said the combined settlement costs and attorney costs likely total well over Altfeld”s annual pay.

“When you consider all the money spent, he could have worked another year-plus on the $220,000 salary,” she said, noting that Altfeld had agreed to pay and compensation cuts of $57,000.

“We could have saved a ton of money. Instead we spent all that money,” Amadeo said.

But Mayor Bruce Delgado said, “Financially it was a good deal for the city.”

Former development services director Doug Yount is the current interim city manager and his former job hasn”t been filled. Instead of paying two high-cost executives, Delgado said the city is paying one.

“We”ve reduced our payroll by $220,000,” he said.

Moreover, he said the city is set on hiring its next city manager at considerably less money than Altfeld”s final salary.

“I think we can get under $180,000 and closer to $150,000,” Delgado said. That would mean annual $70,000 savings on a city manager”s salary, he said.

The eight-page settlement says it is a “no fault” agreement with neither side admitting liability or wrongdoing. It says the parties are pleased by the agreement and “will not disparage the other.”